- Ford warned that it will raise prices on May-built vehicles arriving at dealers this summer.
- The company says around 80 percent of US sales are safe from full vehicle import tariffs.
- Ford hasn’t revealed how much prices may rise for tariff-impacted models just yet.
In early April, Ford announced that it would extend employee pricing to all American buyers, a move intended to cushion the blow before the full weight of new tariffs took hold. That offer, however, may be short-lived. Starting next month, Ford is preparing to raise vehicle prices unless the Trump administration introduces substantial changes to its trade policy.
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Read: Ford’s Employee Pricing Sounds Nice Until You See What It Took Away
A recent internal memo from Andrew Frick, head of Ford’s Blue and Model e divisions, informed American dealers that price increases are expected for vehicles built in May. Since those vehicles likely won’t arrive on dealer lots until late June or early July, the current employee pricing offer could stay in place until then.
Temporary Relief, Long-Term Costs
President Trump recently indicated he could provide car manufacturers with a temporary tariff reprieve to give them more time to move production to the United States. However, hefty duties are expected to hit certain imported car parts by May 3, and this will likely have a big impact on the auto industry.
According to Auto News, Ford believes certain tariffs will remain in place for the foreseeable future, forcing it to take action to protect its bottom line. Approximately 80% of the vehicles Ford sells in the United States are produced locally, and while this will save them from the blanket 25% tariffs on imported cars, it doesn’t protect them from tariffs on parts manufactured overseas and used in its cars.
What’s Not Made Here Still Matters
Models like the Bronco Sport, Maverick, and Mustang Mach-E are all built in Mexico, making them more vulnerable to added costs. Ford hasn’t shared specifics on how much prices might rise, but it’s fair to expect the increases will be noticeable. Customers looking for a new Ford could end up paying significantly more, possibly in the thousands, depending on how the pricing changes are applied.
On paper, Ford’s current employee pricing deal for general buyers sounds good. However, at the same time it announced the program, Ford axed pre-existing promotional financing offers for much of its line-up. Additionally, it cut back generous discounts available for several models, including the Expedition and Mustang Mach-E.
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So while the headline might promise savings, buyers should take a closer look before assuming they’re getting the full benefit.
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